LS Power Designated for Electric Transmission Project as Part of Artificial Island Process in PJM
East Brunswick, NJ – July 29, 2015 – LS Power, through its Northeast Transmission Development subsidiary, has been designated to develop, construct, own, operate and maintain an electric transmission project in the Artificial Island competitive selection process in the PJM Interconnection.
Seven project sponsors submitted a total of 26 proposed solutions ranging in cost from a little over $100 million to over $1.5 billion. PJM undertook an extensive, open and transparent review of the proposals, evaluating performance, cost and cost commitments, and constructability. The competitive process conducted by PJM was among the first of its kind – soliciting solutions to resolve a system reliability issue from all qualified participants, not just the incumbent utility – and will result in very significant cost savings to the ultimate ratepayers. “The range of unique alternatives submitted to PJM for review illustrates the benefits offered by the sponsorship model in PJM. The process encourages creativity and ensures the best solution is identified and ultimately selected,” said Paul Thessen, President of LS Power Development.
The LS Power proposal selected by PJM included binding project cost containment provisions, which were among the first of their kind in the regulated transmission industry. “We agreed to a cap on the construction costs,” said Mr. Thessen. “The winner from competition in the transmission sector is the consumer – they benefit from lower cost solutions with the protection of binding cost containment provisions in the event the project ends up costing more than expected,” Thessen explained.
As PJM and the other RTOs move forward with implementation of the Federal Energy Regulatory Commission’s Order No. 1000, which was designed to foster competition in transmission planning across the country, LS Power looks forward to continuing to lead with environmentally-responsible, cost-effective, and consumer-protective transmission solutions that offer ratepayers substantial benefits.
About LS Power:
Founded in 1990, LS Power is an employee-owned, independent power company with offices in New York, New Jersey, Missouri, California and Texas. LS Power is a developer, owner, operator and investor in power generation and transmission infrastructure throughout the United States. Since inception, LS Power has developed, constructed, managed or acquired more than 30,000 MW of competitive power generation and 470 miles of transmission infrastructure, for which it has raised over $29 billion in debt and equity financing. For more information, please visit www.LSPower.com.